How to Recapture or Prorate Credit with MD Tax Bills

How to recapture or prorate credit with the Tax Bills program

• Permanent adjustment to Homestead Credit
• To prevent Credit from recalculating based on the Assessment

• MD Property Tax Billing
• Maryland
• Tax Bills (tmdbmtgn)

Parcel is no longer owner Occupied and should not receive the full Homestead credit. The Assessment value should not be reduced, but the Credit must be prorated based on the length the lived on the parcel

The Tax Bills program can be used to manually prorate credits. Naturally, the Assessment controls how much Homestead credit is calculated. See Maryland Homestead Credit Calculation for more information.

In the scenario where the assessment cannot changed, but the owner's credit must be prorated or recaptured, a permanent adjustment can be made manually.

1. Navigate to Property Tax Billing > South > Maryland > Billing Other Processes > Tax Bills
2. Click Add or the Get Bill button, and complete the required field on the initial screen
3. Click the Charge Detail button
4. Click the Charge/Credit button
5. Click Add (this begins the individual adjustment change to the charge code that received the Homestead Credit)
6. Enter the Charge code
7. Enter either C or E in the Credit/Exem field
8. Enter the Credit Code
9. Leave the Net Assessment as 0
10. Enter the amount change in the Tax field (the amount of credit or exemption changed, can be a negative value to remove credit)
11. Enter Y in the Adjustment field. This indicates whether the adjustment is a recapture (Y) or not (space). (if adjusting a Homestead Credit, a Y will prevent the amount from auto-calculating based on the Assessment)